Zambia: Microfinance outfit secures $6.3m equity investment
EDFI, IDH Farmfit Fund and Abler Nordic have announced an equity investment in Agora Microfinance Zambia.
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EDFI Management Company (EDFI MC), IDH Farmfit Fund and Abler Nordic have announced an equity investment of about $6.26 million in Agora Microfinance Zambia (AMZ). This strategic investment aims to transform AMZ into a deposit-taking microfinance institution and expand its reach to rural Zambian communities.
AMZ is a non-deposit microfinance institution established in 2011 to improve financial access in rural Zambia. AMZ serves over 150,000 clients across Zambia's 10 provinces, focusing primarily on smallholder farmers and small traders. The institution operates through a network of 40 branches, reaching remote and underserved areas often neglected by other financial institutions.
Group loans make up around 75% of AMZ's loan portfolio, but the company has also expanded its offerings to include individual, agricultural, SME, and leasing loans, as well as life, health, and weather-index insurance, and mobile money services.
The managing director of Abler Nordic, Arthur Sletteberg said: “We’re looking forward to collaborating with the team to broaden access to financial services in rural Zambia. AMZ’s ranking among Africa’s top three in the 2024 60 Decibels Microfinance Index really shows the impact they’re making in rural communities. With 94% of the surveyed customers reporting increased income and 82% accessing loans for the first time, AMZ are reaching underserved areas that others shy away from.”
Barbara Visser, chief operating officer of IDH Investment Manager, the manager of the Farmfit Fund, commented: “This investment demonstrates the IDH Farmfit Fund's commitment to advancing financial inclusion for smallholder farmers and will contribute to strengthening Agora's operations.”
Rodrigo Madrazo, CEO of EDFI Management Company, said: “Our investment in AMZ represents a significant step towards expanding financial access in rural Zambia. By supporting AMZ, we're helping AMZ to pave the way for more affordable financial services for smallholder farmers.”
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